Integrating mobile with other media

Opportunity for mobile operators and the role they should play

1 Reg Cox

For this interview I looked at several opportunities for mobile operators to integrate mobile with other media

• Voucher redemption is store

• Sponsored alerts to consumer base

• Smart posters

• Access control systems for car parks and buildings

• Self payment for shopping in supermarkets

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Opportunities Considered Preliminary read-out

• Merchant infrastructure and phone capability in place today

• Propositions such as Vodacoms’s call me will require significant back end integration

• Will require NFC enabled phones and a smart poster ecosystem

• Again will require NFC enabled phones

• Will require bar code scanner capability on terminals and ecosystem involving banks

• Make use of existing capability in the high street and back end systems along side significant mobile operator investment in handset subsidy

Focus of today’s discussion

2 Reg Cox

Orange may be able to pull together a commercial proposition but the industry still has a long way to go, operators such as orange need to continue to push on four wider agendas…

3 Reg Cox

‘Voucher redemption in store’ is a short term deliverable proposition with all ecosystem players technically ready to go

Selects free coffeeand any other items

Teller types voucher number into PoS terminal

Voucher validatedand receipt printed

4 Reg Cox

1. Tap poster

2. Claim coupon online

3. Redeem coupon at POS

‘Voucher redemption in store’ can be more compelling and offer a better UE with the advent of NFC and new ecosystem players

5 Reg Cox

• Advertiser pays per user interaction

• Consumer is targeted at Point of Purchase

• Real time personalisation of offers

• Viral nature of promotion can be encouraged, e.g. pass voucher to friends

• Merchant can learn and adapt the campaign in real time

What is really important is that Orange develop this proposition around the fundamentals of advertising

6 Reg Cox

Orange are leaving ‘money on the table’ by not pursuing this opportunity

Telecoms market matrix – WE 2009 (Millions)- Analysis Mason 2010

Potential voucher redemption opportunity for Orange £84m p.a. by 2014

$625mEurope

2011 mobile redemption

10xGrowth 2014

Value $100m$100m

Global Voucher redemption 2011 (Millions)- Juniper Research 2010

Assumed Coupon revenue share of 10% (~Cost of handling coupon)

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et 2

5% o

n m

obile

Mobile advertising growth rates- Strategy Analytics 2009

7 Reg Cox

$1bn$1bn Value of coupons redeemed on Orange

Recommendations for delivery of ‘voucher redemption in store’ commercial proposition

1. Programme set up and exec sponsorship– Start June– Scope and ecosystem design– Budget– Looking for results by end Autumn 2010

2. Actively seek ecosystem partners– Technology / concept partners willing to invest– Internal technology teams impacted by trial

3. Business Development– Identify and approach brands and advertising agencies (enterprise sales)– Business model approval

1. Not close enough to understand– Understand role of Barclaycard– Global v UK enabler access (Targeting enablers etc)– NFC technology readiness– Open or closed pilot (GSMA / MNO)– Privacy concerns– Other Operating companies in FT Group

8 Reg Cox